Hon Simon Watts
Minister of Revenue

The Government has decided to discharge the Digital Services Tax Bill from the legislative programme, Revenue Minister Simon Watts announced today.

The Digital Services Tax Bill was introduced in 2023 by the previous Government. It was a response to a perceived lack of progress towards developing an agreement with other countries to address the taxation challenges posed by digitalisation.

“We have been monitoring international developments and have decided not to progress the Digital Services Tax Bill at this time. A global solution has always been our preferred option, and we have been encouraged by the recent commitment of countries to the OECD work in this area,” Mr Watts says.

“New Zealand has long supported, and benefited from, collective action and the global rules-based system. By focusing on a global solution, it will enable an agreed, consistent outcome across participating countries.”

As a result of taking this action, the forecast revenues from the introduction of a Digital Services Tax no longer meet the criteria for inclusion in the Crown accounts.

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